When firms do not deal swiftly and fairly with the unethical behavior of employees, ethical employees feel penalized.

Question

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To the extent that behavior is a function of its consequences, the manager needs to reward ethical behavior and penalize unethical behavior. Research suggests that employees expect the organization to dole out relatively harsh punishment for unethical conduct. If the company does not deal swiftly with unethical behavior, often the ethical employees feel punished.

When Firms Do Not Deal Swiftly and Fairly with the Unethical